Segment Information

3 Months Ended

Dec. 26, 2020

Segment Reporting [Abstract]

Segment Information

18. Segment Information

The Partnership manages and evaluates its operations in four operating segments, three of which are reportable segments: Propane, Fuel Oil and Refined Fuels, and Natural Gas and Electricity. The chief operating decision maker evaluates performance of the operating segments using a number of performance measures, including gross margins and income before interest expense and provision for income taxes (operating profit). Costs excluded from these profit measures are captured in Corporate and include corporate overhead expenses not allocated to the operating segments.  Unallocated corporate overhead expenses include all costs of back office support functions that are reported as general and administrative expenses within the condensed consolidated statements of operations.  In addition, certain costs associated with field operations support that are reported in operating expenses within the condensed consolidated statements of operations, including purchasing, training and safety, are not allocated to the individual operating segments.  Thus, operating profit for each operating segment includes only the costs that are directly attributable to the operations of the individual segment.  The accounting policies of the operating segments are otherwise the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 26, 2020.

The propane segment is primarily engaged in the retail distribution of propane to residential, commercial, industrial and agricultural customers and, to a lesser extent, wholesale distribution to large industrial end users.  In the residential and commercial markets, propane is used primarily for space heating, water heating, cooking and clothes drying.  Industrial customers use propane generally as a motor fuel burned in internal combustion engines that power over-the-road vehicles, forklifts and stationary engines, to fire furnaces and as a cutting gas.  In the agricultural markets, propane is primarily used for tobacco curing, crop drying, poultry brooding and weed control.

The fuel oil and refined fuels segment is primarily engaged in the retail distribution of fuel oil, diesel, kerosene and gasoline to residential and commercial customers for use primarily as a source of heat in homes and buildings.

The natural gas and electricity segment is engaged in the marketing of natural gas and electricity to residential and commercial customers in the deregulated energy markets of New York and Pennsylvania.  Under this operating segment, the Partnership owns the relationship with the end consumer and has agreements with the local distribution companies to deliver the natural gas or electricity from the Partnership’s suppliers to the customer.

Activities in the “all other” category include the Partnership’s service business, which is primarily engaged in the sale, installation and servicing of a wide variety of home comfort equipment, particularly in the areas of heating and ventilation.

The following table presents certain data by reportable segment and provides a reconciliation of total operating segment information to the corresponding consolidated amounts for the periods presented:

	Three Months Ended
	December 26,			December 28,
	2020			2019
Revenues:
Propane	$	268,624		$	285,425
Fuel oil and refined fuels		15,750			25,891
Natural gas and electricity		6,876			8,721
All other		13,941			13,841
Total revenues	$	305,191		$	333,878
Operating income (loss):
Propane	$	83,604		$	86,122
Fuel oil and refined fuels		2,625			2,728
Natural gas and electricity		1,959			2,229
All other		(5,061	)		(5,387	)
Corporate		(25,441	)		(25,838	)
Total operating income		57,686			59,854
Reconciliation to net income:
Interest expense, net		18,135			19,072
Other, net		1,078			978
Provision for (benefit from) income taxes		496			(359	)
Net income	$	37,977		$	40,163
Depreciation and amortization:
Propane	$	25,691		$	26,980
Fuel oil and refined fuels		400			507
Natural gas and electricity		6			—
All other		47			47
Corporate		1,873			1,740
Total depreciation and amortization	$	28,017		$	29,274

	As of
	December 26,		September 26,
	2020		2020
Assets:
Propane	$	1,981,099	$	1,934,960
Fuel oil and refined fuels		50,143		47,063
Natural gas and electricity		11,935		10,594
All other		19,639		18,733
Corporate		47,455		35,903
Total assets	$	2,110,271	$	2,047,253